scholarly journals Does government investment crowd out private investment in China?

2014 ◽  
Vol 17 (1) ◽  
pp. 1-12 ◽  
Author(s):  
Xiaoming Xu ◽  
Yanyang Yan
Keyword(s):  
Private Investment ◽  
Government Investment ◽  
Crowd Out ◽  
Investment In China

scholarly journals Research on the Influence of Real Estate Development on Private Investment: A Case Study of China

2018 ◽  
Vol 10 (8) ◽  
pp. 2659 ◽  
Author(s):  
Jiangtao Li ◽  
Jianyue Ji ◽  
Huiwen Guo ◽  
Lei Chen
Keyword(s):  
Real Estate ◽  
Generalized Method Of Moments ◽  
Private Investment ◽  
Medium Size ◽  
Real Estate Development ◽  
Real Economy ◽  
Real Estate Industry ◽  
The Real ◽  
The Real Estate ◽  
Investment In China

Private investment in China, as a developing country, is an important source of financing for Chinese SMEs (Small and Medium-Size Enterprises) and has played a major role in the development of the real economy. However, in 2016, the growth rate of private investment in China dropped from 10.18% to 3.17%, which had a significant impact on the real economy. At the same time, China’s real estate market has developed rapidly, attracting a large number of capital inflows. The relationship between real estate development and private investment in China is worth considering. This study first, theoretically analyzes the influence mechanism of real estate industry on private investment, pointing out that within a modest development range, the development of real estate industry can promote private investment through the industrial linkage, urbanization, and balance sheet effects, but when real estate is overdeveloped, it has an inhibitory effect on private investment through vampire effect, raising costs and reducing demand effect. In other words, real estate has different effects on private investment in different developmental periods. Therefore, there is a non-linear relationship between the two variables. Second, the relevant provincial panel data of 31 provinces in mainland China from 2003 to 2015 were selected. Using the dynamic panel system Generalized Method of Moments (GMM), this study estimated the correlation between real estate development and private investment. The empirical results showed that the development of the real estate industry has a significant impact on the level of private investment; the two showing an “inverted U-shaped” relationship. At present, in some provinces in China, the real estate industry has exceeded the inverted U-shaped threshold. To boost the vitality of private investment in promoting real economic growth, the development of the real estate industry should be restricted, and house prices should be properly regulated.

scholarly journals Do FDI and Public Investment Crowd in/out Domestic Private Investment in the SADC Region

2021 ◽  
Vol 19 (1) ◽  
pp. 3-25
Author(s):  
Eslon Ngeendepi ◽  
Andrew Phiri
Keyword(s):  
Capital Expenditure ◽  
Public Investment ◽  
Trade Openness ◽  
Government Expenditure ◽  
Private Investment ◽  
Policy Implications ◽  
Domestic Investment ◽  
Government Investment ◽  
Long Run ◽  
Short Run

Our study examines the crowding-in/out effect of foreign direct investment and government expenditure on private domestic investment for 15 members of the Southern African Development Community (SADC) for the period 1991–2019. The study employed the panel Pool Mean Group (PMG)/ARDL technique in estimating the short-run and long-run cointegration relationships between FDI, government capital expenditure and domestic private investment and adds three more variables for control purposes (interest rate, GDP growth rate and trade openness). For the full sample, FDI crowds-in domestic investment whilst government crowds-out domestic investment. However, in performing a sensitivity analysis, in which the sample was segregated into low and high income economies, both FDI and government investment crowd-in domestic investment whilst government expenditure crowds-out domestic investment in lower income SADC countries with no effect of FDI on domestic investment. Policy implications are discussed.

scholarly journals Factors Affecting Poverty Level In South Sumatra, Indonesia

2017 ◽  
Vol 1 (1) ◽  
pp. 119
Author(s):  
Jhony Franata ◽  
Taufiq Marwa ◽  
Muhammad Komri Yusuf
Keyword(s):  
Path Analysis ◽  
Indirect Effect ◽  
Negative Impact ◽  
Secondary Data ◽  
Private Investment ◽  
Poverty Level ◽  
Government Investment ◽  
Factors Affecting ◽  
Directorate General ◽  
Fiscal Balance

The study aims to find out the direct and indirect effect of education, health, government investment and private investment on productivity as well as the poverty level in South Sumatera. The study used secondary data of 2004-2005 published by the Central Bureau of Statistics (BPS), Directorate General of Fiscal Balance (DJPK) and other institutions. It used Path Analysis. The Result of the study show that (1) education, health, and government investment did not directly influence the productivity in South Sumatra, while the private investment directly and positively influenced the productivity in South Sumatra, (2) education, government investment, and private investment did not directly influence the poverty level in South Sumatra, while the health and productivity directly and significantly but negatively influenced the poverty level in South Sumatra, (3) education, health, and government investment indirectly did not influence the poverty level through the productivity in South Sumatra, while the private investment indirectly have significant and negative impact on poverty level through productivity in South Sumatera. 

Public and Private Investment and Economic Growth: An Empirical Investigation

2018 ◽  
Vol 63 (2) ◽  
pp. 87-106 ◽  
Author(s):  
Garikai Makuyana ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Public Investment ◽  
Private Investment ◽  
Current Debate ◽  
Annual Data ◽  
Public And Private ◽  
Long Run ◽  
Short Run ◽  
Crowd Out

Abstract This paper provides new evidence to contribute to the current debate on the relative impact of public and private investment on economic growth and the crowding effect between the two components of investment in South Africa. Using annual data from 1970 to 2017, the study applies the recently developed Autoregressive Distributed Lag (ARDL)-bounds testing approach to cointegration. The study finds that private investment has a positive impact on economic growth both in the long run and short run, while public investment has a negative effect on economic growth in the long run. Further, in the long run, gross public investment is found to crowd out private investment, while its infrastructural component is found to crowd in private investment. The results of the study also reveal that both gross public investment and non-infrastructural public investment crowd out private investment in the short run. Overall, the study finds private investment to be more important than public investment in the South African economic growth process and that the importance of infrastructural public investment in stimulating private investment in the long run cannot be over-emphasized.

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